What is the present value of this security

Assignment Help Financial Management
Reference no: EM131511589

You own a security that provides an annual dividend of $100 forever. The security’s annual return is 4%. What is the present value of this security? Round your answer to the nearest cent.

Reference no: EM131511589

Questions Cloud

Find electric field outside and inside of a solid sphere : Find electric field outside and inside of a solid sphere having charge density s and radius R.
What was its charge for depreciation and amortization : What was its charge for depreciation and amortization?
The intellectual capital notes on the course schedule : Please take a look at the Intellectual Capital notes on the Course Schedule.
What sort of special intellectual capital management : What sort of special Intellectual Capital (IC) management problems does this present for a firm beyond issues
What is the present value of this security : What is the present value of this security?
What is the annual after-tax cost to her current employer : What is the annual after-tax cost to her current employer to provide Seiko with the $14,200 increase in salary?
While there are differences for each type of fund investor : While there are differences for each type of fund investor, they should share many characteristics.
What is the future worth of the first satellite : What is the future worth of the second satellite? What is the future worth of the first satellite?
Compute the value of the average collection period : Compute the value of the average collection period.

Reviews

Write a Review

 

Financial Management Questions & Answers

  Was this smart investment for company if interest rate

A company buys a piece of equipment that cost $10000. This piece of equipment will last 10 years and at the end of those 10 years it will have a salvage value of $1500. Each year there are $1000 in operation and maintenance cost and the company’s tot..

  What is the projected dividend for the coming year

Company A is growing fast. Dividends are expected to grow at 30% per year during the next 3 years, 18 % over the following year, and then 8% per year indefinitely. The discount rate is 13%, and the stock currently sells for $65 per share. What is the..

  Largest retirement nest egg possible and paid-off home

You and your partner are both 35 years old. You have recently found the home of your dreams and need to decide which type of mortgage to take on the house: 20 years or 30 years. When you retire at age 65, you want to have the largest retirement nest ..

  What is the total face value of group of municipal bonds

What is the total face value of a group of municipal bonds that have a bond interest of 4% per year

  What is the current value of the stock at a discount rate

A stock is expected to pay dividends of $1.20 per share in year 1 and $1.35 per share in year 2. After that, the dividend is expected to increase by 2.5% annually. What is the current value of the stock at a discount rate of 14.5%?

  Values of the assets and liabilities of each bank change

how do the values of the assets and liabilities of each bank change? What accounts for the differences between the two banks’ accounts?

  The net advantage of leasing falls to zero

Lease versus Buy Sadik Industries must install $1 million of new machinery in its Texas plant. It can obtain a bank loan for 100% of the required amount. Alternatively, a Texas investment banking firm that represents a group of investors believes tha..

  Any prospective young bride in his social circle

Mr. Darcy is a single man of good fortune, so good, in fact, that it allows him to sustain a lavish lifestyle simply on the interest he earns on his savings without ever having to work. Mr. Darcy has “ten thousand a year” as any prospective young bri..

  Estimated annualized return based on these predictions

A 7-year, 5 percent coupon bond has a yield to maturity of 4 percent. A portfolio manager with a four-year horizon needs to forecast the total return on the bond over the coming four years. Calculate the estimated annualized return based on these pre..

  Annual payments-interest rate on the underlying mortgages

Given a MPT with a starting pool balance of $1,000,000, whose underlying collateral is a group of 10 year FRMs with annual payments, interest rate on the underlying mortgages=10%, servicing fees=0.5%, and prepayment projected to be 10% annually, what..

  How often does the company update the general ledger

How often does the company update the general ledger and what is the process for preparing budgets using the ERP system?

  About the required rate of return

Stock R has a beta of 2.0, Stock S has a beta of 0.45, the expected rate of return on an average stock is 12%, and the risk-free rate is 3%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exc..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd